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Louisiana-Pacific (LPX) Stock Sinks As Market Gains: What You Should Know

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Louisiana-Pacific (LPX - Free Report) closed the most recent trading day at $58.07, moving -1.78% from the previous trading session. This move lagged the S&P 500's daily gain of 0.33%.

Coming into today, shares of the home construction supplier had lost 13.12% in the past month. In that same time, the Construction sector lost 1.71%, while the S&P 500 gained 1.74%.

LPX will be looking to display strength as it nears its next earnings release. On that day, LPX is projected to report earnings of $4.27 per share, which would represent year-over-year growth of 893.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.21 billion, up 120.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.70 per share and revenue of $4.13 billion, which would represent changes of +194.66% and +47.96%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for LPX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 14.46% higher. LPX is currently a Zacks Rank #1 (Strong Buy).

Investors should also note LPX's current valuation metrics, including its Forward P/E ratio of 4.65. For comparison, its industry has an average Forward P/E of 12.14, which means LPX is trading at a discount to the group.

The Building Products - Wood industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 7, which puts it in the top 3% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow LPX in the coming trading sessions, be sure to utilize Zacks.com.


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